Conventional pay TV service providers are facing a stiff competition from OTT services in the media market which are offering live and on-demand content at an affordable price.
Therefore, the TV streaming service now acknowledges the necessity of digitalization to ensure its future viability and coexistence with OTT. The only option for the operators is to offer the entire range of digital solutions to the consumers.
However, how should the operators proceed with their current strategy? What kinds of difficulties and possibilities do they anticipate?
Here are five market dynamics demonstrating that pay TV operators aren’t willing to give up and are implementing the required improvements to future-proof their services:
- Digitizing the Viewing Experience
Top brands like Google, Roku, and Apple have already launched their own customized versions of retail TV gadgets. Pay TV operators may need to enter the market with a fresh and intriguing device strategy in order to transform their legacy products into streaming products. It will enable users to finally use cable services on their smartphones, computers tablets, and other streaming devices.
Consumers who don’t have smart devices or who aren’t prepared for the digital transformation can be offered an Android-based set-top box to meet their needs while still reaping the convenience of the Android ecosystem.
- Delivering Content On-Demand
Users are more used to watching live news and sports events. But the era of “appointment TV”, where people sit and watch shows when they’re broadcasted is going to end soon. Viewers want to access content on-demand at their convenience.
Pay TV operators need to shift from a linear, time-based paradigm to non-linear, on-demand, non-time-constrained content. Incorporating a unique pay TV subscription billing software would also help them enhance their current subscription based billing. Operators who can create an experience that satisfies the urge to watch content live on-demand is definitely going to win.
- Using Next Level Data
We have often heard the quote, “You can’t judge a book by its cover”. The same holds true when we choose to watch something. We cannot determine the content’s quality based on its thumbnail only.
One of the most significant factors in increasing video engagement is assisting users in going from having no knowledge of the content to opting to play it.
Pay TV service providers can implement the recommendations technologies such as auto-suggestions of videos to help users find the appropriate content at the right moment.
- Offering Customized Linear Channels
Although every video content might be accessible when needed, it doesn’t rule out the possibility of auto-playing a media line-up in a linear format.
When the program auto-plays after people finish viewing one video, behavioural analytics reveal that viewers end up seeing and appreciating stuff they would not have otherwise. Traditional linear channels have the drawback of being one-size-fits-all solutions. However, a smart subscription billing platform, can customize the experience of consumers. Networks try their best to optimize timings for the broad public, but a tailored feed will always be superior.
- Personalizing Advertising
People generally dislike ads, yet there comes a time when they would rather watch a commercial than paying a higher amount. If there will always be some video advertisings, viewers might be compelled to watch it regardless of its relevance. The tremendously sophisticated advertising technology that has propelled the customization of advertisements via Google, Instagram, Facebook, and other platforms is set to become mainstream on the television screen.
The cord-cutting movement is driven by consumers’ wish to access high-quality content at a low cost. While pay TV’s potential to compete is better than ever, operators are now recognizing the long-term benefits of employing an app-based subscription billing management solution. It not only manages their content but the entire consumer lifecycle as well. Magnaquest’s core product Sure can help you manage your subscription billing system easily.